In the audit of accounts receivable,the most important emphasis should be on the
A) Completeness assertion.
B) Existence assertion.
C) Rights and obligations assertion.
D) Presentation and disclosure assertion.

Question

Quizplus · Accepted Answer

In the audit of accounts receivable, the most important emphasis should be on the existence assertion, which means ensuring that the receivables actually exist and are not overstated. This is because accounts receivable are a significant asset on the balance sheet, and any overstatement can lead to an inflated financial position of the company. The other assertions (completeness, rights and obligations, presentation and disclosure) are also important, but the existence assertion takes precedence.

In the Audit of Accounts Receivable,the Most Important Emphasis Should